The Retirement Income Red Zone Danger

If you have put together a sizeable portfolio prior to retirement, knowing how to protect those assets during your first five years after retirement will be extremely important, especially if you want to be sure they will last the remainder of your life.  These first five years after retirement are sometimes referred to as the red zone ... the time when decisions you make can have the biggest impact on your future.

What Bad Decisions Do People Make in Early Retirement?

When people first retire, they often have a number of of pent-up dreams they wish to fulfill.  They still feel healthy and they may want to move somewhere new, travel, buy a boat or RV, and have a little fun.  After all, they have waited and saved their entire lives for this moment and they want to enjoy it before age and illness slows them down.

Next, retirees often stop saving and putting aside money for the future.  As they pull money from the principal without replacing it, retirees gradually see their assets become depleted.

In addition, retirees sometimes do not prepare adequately for rising expenses or problems that could come up in the future, including extra medical expenses such as health insurance deductibles, expensive treatments, long-term care, etc. They also sometimes fail to prepare for things like replacing their car, hot water heater, furnace or other expensive items.

Even if new retirees do not make any of the above mistakes during their first five years after retirement, their assets could become depleted because of poor investment decisions.

Should You Invest for Growth or Safety?

Investment advisors recommend that your retirement assets should be invested for both growth and safety ... but what is the correct balance?  According to an article by CNBC writer, Kelley Holland, "Five Crucial Retirement Years For Your Money," it is extremely important that you do not have negative investment returns during your first five years of retirement.  When experts from Prudential Insurance examined two hypothetical $1 million portfolios, Portfolio A had negative returns for 4 of the first 5 years, but positive returns for all of the remaining years of its existence.  Portfolio B had all positive returns in the first 5 years, but had negative returns in 4 of 5 years between years 25 and 30.

What were the results?  Portfolio A had dropped to zero within 15 years.  Portfolio B had doubled in value by the end of 30 years, despite the negative returns at the end.

What Should an Investor Do?

After examining the results of these two hypothetical portfolios, experts believe it is important that investors manage their money conservatively early in retirement so their portfolio continues to grow in value, even modestly, during this crucial period.  In order to do this, it would be a mistake for retirees to make risky investments or begin depleting their principal for trips or other large purchases.

Retirees need to work with their investment advisor to make sure their money is wisely invested.  Holland recommends that no more than 40 to 60 percent of a retirement portfolio should be in stocks (and, obviously, these should be Blue Chip stocks, not high-risk ones).

As retirees begin to live off their assets, their withdrawals should be modest and their asset allocation should be conservative, particularly during the first five years.  In other posts on this blog, we have reported that most investment advisors suggest that no more than 3 percent of assets should be withdrawn for living expenses during retirement, with tiny increases in the withdrawal rate as the years go by.  If the principal balance is invested conservatively, the assets of most people should last well over 30 years.

Some investment advisors also recommend that any income from the assets that is in excess of what is needed for living expenses should then be invested in stocks which, hopefully, will appreciate and provide an extra cushion for the future. This extra cushion will be especially helpful if there is a stock downturn in the future ... which is almost certain to happen every few years.

In the end, this plan is the one that is most likely to leave you with enough assets to last the remainder of your life.

If you are interested in reading more tips about handling your retirement income, where to retire, common medical problems, Medicare, Social Security and more, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional articles.

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Benefits of Senior Roommates

A significant percentage of senior citizens will spend at least part of their lives living alone.  When this happens, they may suffer from loneliness and depression.  In addition, it can be expensive for one person to afford to pay all the bills.  Because of this, senior roommates are becoming a popular trend.

According to an article in the "Answers" book for the Orange County, California Council on Aging, four million American women now live in households with at least two women over the age of 50.

Why Women are Alone as They Age

More than one-third of women over the age of 65 now live alone.  The reasons for this could be the death of a spouse, divorce, or the fact that they never married.

On average, women live about five years longer than men.  In addition, women often marry men who are older than they are ... which means that some women may live a decade or longer after their husbands die.

Another issue is that there has been a huge increase in gray divorce.  Since 1990, the divorce rate for people over the age of 50 has doubled, according to the National Center for Family and Marriage Research.

Advantages of Senior Roommates

When women decide to enter a house sharing arrangement, they can both benefit in several ways.

*  Financially, people supporting themselves on fixed incomes can live more comfortably if they share the cost of housing, utilities and other expenses.

*  The added security of having another person in the home can be one more advantage of having a roommate.

*  Socialization is an additional reason for finding a roommate.  It is easy for people to become isolated, lonely and depressed as they age.  People who live with an amicable friend will always have someone to talk to, eat with, and sometimes they will do other things together ... such as attending movies or traveling.

Is Having a Roommate Right for You?

Not everyone actually wants to have a roommate close to them all the time.  You need to know yourself, and evaluate the home you will be sharing.  Will you have enough personal, private space?  Are you flexible?  Do you have a lot of allergies, health problems or food preferences which could make it difficult for you to live with other people?

What Guidelines Need to be Put in Writing?

If you are planning to live with another person, it may go better if the two of you put your expectations in writing and discuss them first.  Below are some issues your agreement may need to cover:

*  Decide in advance specifically how the expenses will be shared.  Will one person be the landlord and the other the tenant, or will everything be split right down the middle?
*  Decide who will perform which household tasks and how often ... cleaning, cooking, dishes, yardwork, etc.
*  Decide if the two of you are going to cook and eat together or if you will each be responsible for your own meals.
*  Reach an agreement about pets ... if they are allowed, what kind, how large, where they will be kept, etc.
*  Discuss grandchildren with each other.  Will they be allowed to spend the night, how often, where they will sleep, etc.
*  Discuss other relatives, such as adult children, and whether they will be allowed to spend the night.
*  Discuss dating and whether your dates will be allowed to spend the night.
*  Discuss personal habits such as smoking and drinking.
*  If either of you have strong religious or political opinions that could be the source of arguments, you should consider that before making a decision about whether or not you want to live with this person.
*  Discuss other expectations such as entertaining friends, relying on each other to do the shopping, what time the house should be quiet, using earphones to watch TV, when you could each practice playing your musical instruments, etc.
*  Discuss healthcare preferences with each other, in the event of a medical emergency.  Also make sure you both have contact information for relatives, employers, lawyers or other people who would need to be contacted in the event of death or serious illness.

As you can see, there are a large number of issues to consider before you decide if you and your roommate will be compatible.  Everything should be put in writing after you have talked about it.  This will reduce confusion about what you both agreed to.

How to Find a Roommate

In many cases, you may already know someone who is looking for a roommate because they recently lost a spouse or experienced a financial setback.  However, before bringing up the topic with them, ask yourself how well you think you will get along with that person.  Do they have personal habits that you find irritating?  Even someone who talks too much or too loudly can become irritating after a while.

If you are thinking about getting a senior roommate, you can visit the National Shared Housing website for additional help.

If you need other ideas about where to retire, common medical issues, financial planning, Social Security, Medicare or other retirement issues, use the tabs or pull down menu at the top of the page to find links to hundreds of additional articles.

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Credit Scores and Retirement

Once you retire, your credit score will still be important.  Even if your mortgage is paid off and you have no plans to borrow money ever again, you will still want to carefully monitor your credit rating and make sure there are no issues with it.

When the credit-reporting company, TransUnion, polled a group of Baby Boomers, nearly half of them said that their credit rating would no longer be important after they retired.  This misconception, however, could cause them to have unexpected problems later in life.

Your Credit Rating Could Drop During Retirement

Even though your credit rating will continue to be important when you retire, the truth is that the score normally declines for most people as they get older ... even if they have an excellent credit history and solid assets.

Why will your credit rating go down? 

Below are some common reasons:

If you are like most people, you will use less credit as you age.

Using your debit card to immediately pay cash for purchases does not help you maintain your credit score.

As you pay off your house, car, credit cards and other debts, your credit report and activity become "thin" and could virtually disappear.

Why is a Low Credit Rating a Problem in Retirement?

Today, many people are living 20 years or more after they retire.  While you may think you will never again make a large purchase during the remainder of your life, eventually you may want to downsize to a smaller home, purchase a new car or have other credit needs.

Lenders will look at your credit score if you decide to get a mortgage on a new home, take out an auto loan, apply for a new credit card, or co-sign for a student loan for one of your children or grandchildren.  If you decide to rent an apartment in a retirement community or other location, the management company and the utility companies will want to see your credit score.  In addition, your auto and homeowners insurance premiums will be higher if you have a low credit score.

How Can You Improve Your Credit Score Without Adding Debt?

The last thing you want to do in order to maintain a high credit score is take on new debt.  However, experts recommend some actions that will improve your credit score ... and they don't involve adding debt.

* Every couple of years, ask your credit card issuers to raise your limits by $500 to $1000.  Whenever you have a high limit, but a low balance, your credit score gets a boost.

*  Do not close old accounts, even if you rarely use them, for the same reasons mentioned above.  It is better to have lots of available credit, but a low balance.

*  Keep your main credit cards active by occasionally making a modest purchase using one and paying off the balance quickly.

*  Be careful to make all your payments on time.  If you travel, set up auto payments with your bank so that none of your payments are ever late.

*  If you have let your credit completely lapse and you don't have any credit cards, you may need to rebuild your credit history.  To do that, you may have to start with a secured card from your bank.

*  Check your credit report regularly to be sure there are no errors on it that could drag down your credit rating.  You can get a free copy of your report every year from each of the three major credit-reporting companies.  You can contact them individually or you can go to annualcreditreport.com.  You can also sign up on the free site CreditKarma.com to find out your current credit rating, get suggestions on how to raise it, and see your credit reports.

Take the above steps, protect your credit, and monitor your credit reports regularly.  Just because you are retired, you should not forget these simple precautions.

If you are interested in learning more about financial planning for retirement, common medical issues, where to retire, Social Security, Medicare or more, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional articles.

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Dangerous Medications, Vitamins and Herbal Remedies

Virtually everyone in the United States uses either prescription medications, vitamins, or herbal remedies.  In the right doses and combinations, most of them are safe.  However, your prescriptions and supplements can turn against you.  In extreme circumstances, they can cause you to develop new health problems or dangerous drug interactions.

According to an article in the August/September 2016 AARP Magazine, you should periodically have a "Checkup for Your Medicine Cabinet."  You should repeat it annually to make sure the pills you are taking are helping you, not making your health problems worse.

Examine Your Prescription Medications

Check Expiration Dates:  While you do not want to keep any drug after its expiration date, according to the article, you want to be particularly careful about insulin, inhalers, oral nitroglycerin, EpiPens, anti-convulsants, warfarin, digoxin and thyroid medication.  If the drug is in its original packaging, the expiration date should be stamped on the side or bottom.  Otherwise, you may have to ask your pharmacist or follow their recommended "discard by" date.

Avoid Allergy and Sleeping Pills:  There appears to be a link between the long-term use of allergy or sleeping medications and problems with decision-making and dementia, including Alzheimer's disease.  Even common over-the-counter products such as Benadryl and Nytol can cause problems. Find alternative, drug-free ways of dealing with your allergies or insomnia.

Do Not Overdo the Vitamins

Millions of Americans take vitamins.  However, excessive amounts of certain vitamins can cause health issues, rather than eliminate them.  Below are four vitamins that the article particularly recommended people limit:

Vitamin B6 - Over 100 mg. a day can cause temporary nerve damage.

Vitamin A - Over 10,000 IUs a day can cause vomiting, headaches, dizziness and blurry vision.

Vitamin D - Over 10,000 IUs a day can cause poor appetite, frequent urination and kidney problems.

Vitamin C - High doses (which were not specified in the article) can double a man's risk of kidney stones.

Watch for Interactions between Herbal Remedies and Certain Drugs

In an effort to avoid taking too many prescription drugs, Americans often resort to herbal remedies.  However, these preparations can be dangerous, especially when combined with medications that have been prescribed to you.  Make sure your doctor knows what herbal remedies you use.  Below are some that are particularly worrisome:

St. John's wort - It can interfere with your statins and high blood pressure medications.

Ginkgo and ginseng - These herbs can interact with blood-thinning medications, which could dangerously increase your bleeding risk.

Kava - Even when it is not combined with other medications, this herb can cause liver damage.

Bottom Line:  Any time you add a new medication or supplement to your usual routine, discuss it with your doctor to make sure it will not conflict with something else you are already taking.  Regardless of whether or not you have been taking the same drugs and supplements for a long time, check with your doctor if any new symptoms develop.  Sometimes it can take a long time for the toxicity to build up in your body.

If you are interested in learning more about retirement planning, common health problems as you age, where to retire, Social Security, Medicare and more, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional articles.

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Dangerous Silent Heart Attacks

A study that tracked nearly 9,500 men and women from 1987 to 2013 discovered that approximately 45% of heart attacks are silent and the victims have no idea that they have experienced a heart event.  Men are more likely to experience silent heart attacks, but women are more likely to die from them.  In fact, anyone who has experienced a silent heart attack has triple the risk of dying from heart disease and is 34% more likely to die from all other causes.

How Do You Know if You Have Had a Silent Heart Attack?

Since these types of heart attacks do not exhibit the classic symptoms of chest pain and shortness of breath, how can someone find out whether or not they have had one?  A doctor can detect them with an EKG, which measures the heart's electrical activity.  In fact, most of the time people only learn that they have had one accidentally, during a routine physical.

What Symptoms Could Indicate You are Having a Silent Heart Attack?

The symptoms of a silent heart attack can be very subtle, but anyone should see their doctor for a physical if they are experiencing several of the following symptoms:

Unexplained fatigue
Muscle pain in the upper back, jaw or arms
Painful indigestion
Sudden sweatiness
Nausea
Flu-like symptoms

Often, people do not recognize that they have had a heart attack at the time.  They only recognize these symptoms when a test shows damage to their heart and they look back and remember a time when they experienced some of the above symptoms.

Are These as Dangerous as "Typical" Heart Attacks?

Yes!  In fact, silent heart attacks can be even more dangerous than a typical one, because the patient may not get the treatment they need in order to prevent another one.  This lack of treatment is even more common for women than it is for men.

"Just a Little Heart Attack" is a short movie about silent heart attacks you can watch using the link to this CNN article:  "Almost Half of All Heart Attacks are Silent."

How Can You Reduce Your Heart Attack Risk?

If you would like to reduce your risk of having a heart attack, either your first or a second one, there are some steps your doctor can help you take.  You should quit smoking, lose weight, get exercise and, if appropriate, make sure your cholesterol and blood pressure are both under control.

Treatments for Silent Heart Attacks

Hospitals and doctors should treat you in the same way they would if you had experienced more traditional symptoms.  There is no difference in the damage that could have been caused by the different types of heart attacks and, in fact, the damage could be more severe in a silent one because of a delay in seeking treatment, since any heart attack will stop or reduce the flow of blood to the heart for a period of time.

If you have been experiencing unusual fatigue, nausea or shortness of breath, especially during mild exercise, you should talk to your doctor about your symptoms.

Interested in learning more about medical issues, financial planning, where to retire, Social Security, Medicare, or other topics that pertain to Baby Boomers?  Use the tabs or pull down menu at the top of the page to find links to hundreds of additional articles.

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Will You Enjoy Retirement?

If you spent the last decade of your working years looking forward to the day when you could "take this job and shove it," have you given much thought to how you will spend your days once you walk out of your office or workplace for the last time?

According to research by the National Center for Health Statistics, the average person who reaches age 65 can expect to live another 19.3 years ... or until they are age 84.  What do you plan to do with those extra two decades of life?  Have you given that serious thought?

Will Retirement Be Fun?

Many people imagine spending long days on the golf course, in their fishing boat, or taking cruises and vacations to exotic locations.  However, is that really what you want to do every day for the last twenty years of your life?  Will you even be able to afford that daily round of golf, the fishing boat, or the travel?

According to U.S. News & World Report, the typical retiree between the ages of 65 and 74 spends four hours a day watching television ... and that is the age group of the youngest retirees, the ones who are most capable of being active.

Is it inevitable that your retirement will eventually leave you feeling isolated, bored, and lonely?  Not necessarily.

What Retirement Options Will Keep Your Life Interesting?

In addition to financial planning, people who are preparing to retire, or who are newly retired, should spend plenty of time thinking about the lifestyle choices they can make as they approach their mid-60's.  Below are some options they may want to keep on the table:

*  Keep working at their current career - What?  After all these years of planning to retire, why would you want to keep working?  Presumably, you have earned a nice income from your job in the past and now you will be able to supplement that income with your Social Security benefits ... which will give you extra money for travel and having fun.  You might also decide to postpone collecting your Social Security until you are age 70, thus substantially increasing your benefits.  Staying at your current job also enables you to maintain your work friendships and connections with other people.  It can give structure to your life and keep your brain alert ... without resorting to endless crossword puzzles.

*  Find an Encore Career - What if there is no way you want to keep working in your old career?  That doesn't mean you need to give up working altogether and just sit home every day.  There are so many possible career choices.  You could find a job with a local business or non-profit, work as a consultant in your former field, become a tutor, or give lessons.  Retirees are even eligible to sign up for the Peace Corps and share their valuable knowledge and experience around the world.  Yes, many people in the 60's (and sometimes a little older) join the Peace Corps.

*  Volunteer in your community - If you really don't need extra income, you still do not want to spend your days sitting around the house, watching television.  Why not contact your local hospital or charity and see if they need your help?  I know a woman who helps out one day a week in a local hospital. She particularly enjoys caring for premature babies that just need extra time being held.  The work is not physically demanding, but she feels it is very rewarding.

*  Find affordable, social hobbies - Everything you do in retirement does not need to be expensive.  Nor do you need to spend time alone when you are pursuing your hobbies.  Join a book club or other activity that you can enjoy with other people.  If you don't know how to find other people who enjoy your hobbies, try www.meetup.com.  This website helps you link up with people in your community who are looking for people with common interests ... whether that means hiking, traveling, tai chi, golf, playing games, learning bridge, dancing, tennis, photography, dog walking, writing, painting, yoga, attending movies, boating, playing music, cycling or eating out. Many places of worship also have special activities for their older members.  Go to your local senior center to find exercise classes, low-cost meals and a wide variety of activities.  There is no reason to pursue your favorite activities in solitude when it is so easy to connect with other people who enjoy doing the same things you do.

Plan Your Life After Retirement

Financial planning is a very important part of getting ready for retirement.  However, it is equally important to plan what you will do with that free time ... and hopefully that will not mean just sitting around for the last twenty years of your life.

Plan to have a satisfying and fulfilling life during this period of time.  Think about how you could enrich your life while sharing your gifts with others.

I know people who are as busy or even busier in retirement than they were when they had full-time jobs during their "working years."  What is most interesting is that those are the people who seem to be the happiest as they age!

Are you looking for more information about retirement planning, where to retire, common medical issues, Social Security, Medicare and changing family relationships?  Use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

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Confusing Parts of Medicare

Are you confused about all the different parts of Medicare ... the so-called Medicare "alphabet?"  If so, you are not alone. Whether people are getting prepared to sign up for Medicare for the first time or are already using it, the different parts can seem like a foreign language.  Below is a brief summary of the different parts, as well as a little basic information that everyone needs to know. 

Medicare Parts A, B and D

Medicare is broken up into four different parts and each one has a different purpose and, in some cases, different requirements that determine whether or not you are eligible.

Medicare Part A:  This section will help pay for your stay in a hospital or skilled nursing facility. It might also pay for home health services and hospice care, if the patient meets certain criteria.  If you or your spouse paid into Medicare long enough during your working years, you do not pay monthly premiums for Part A.  If neither you nor your spouse paid into it while you worked, you can still buy Part A services by paying monthly premiums.  Everyone is entitled to Medicare Part A, either free or for a monthly fee.

Medicare Part B:  This section will help pay for doctors' services (whether in or out of the hospital) and outpatient care, including lab work, tests and health screenings.  It can also cover the cost of some types of medical equipment and supplies, under some circumstances, as well as most vaccines or drugs that the doctor gives you in his office.  You do pay monthly payments for Part B.  However, low-income people may quality for state assistance.  There is a seven month window to sign up for Part B ... three months before your 65th birthday month, during your birthday month, and three months after your birthday month.  If you wait too long to sign up, you can still obtain it, but you will pay extra premiums for the rest of your life.  Medicare Part B only covers about 80 percent of their approved costs and the patient pays the other 20 percent.  At the bottom of this article is more information on the two options you have for covering your portion of the bills.

Medicare Part D:  This section covers the cost of prescription drugs that you take at home.  There is an additional premium involved in getting a Part D drug plan, unless you purchase it as part of a Medicare Advantage Plan.

Medicare Supplements and Medicare Part C

Medicare parts A, B and D are frequently called "basic Medicare."  People often believe they are all you need.  However, sometimes they do not realize they need to sign up for Part D to cover their drugs.  In other cases, people do not realize that when they settle for basic Medicare alone, they are still obligated to pay 20 percent of their medical bills ... which can be substantial.

What do people do to solve these problems?  They have two choices.  First, they can get the three parts of basic Medicare (A, B and D) PLUS purchase a supplemental health insurance policy.  Second, they can simply get a Medicare Advantage plan, also known as Medicare Part C, PLUS a Part D plan if the Medicare Advantage plan they choose does not include drug coverage.  Confusing enough?  Below is a little more information.

Supplemental Insurance:  Many insurance carriers offer supplemental policies, sometimes called Medigap policies, including Anthem, Humana and United Healthcare.  There are different rates, depending on the size of the deductibles and co-pays you prefer. The government even has a website to help you compare Medigap policies.  If you decide to get a Medigap supplemental policy, do it as soon as you sign up for Medicare Part B.  If you buy one within six months of enrolling in Part B, the insurers cannot deny you coverage or charge higher premiums because of preexisting medical conditions.  With supplemental insurance, your doctor or hospital will send medical bills to Medicare first.  Once Medicare reimburses the doctor or hospital, next they bill the supplemental insurance carrier.  After that, they will bill you for any remaining costs.  This system sometimes confuses people, because they keep getting statements from the hospital, doctor and the insurance companies for the same procedure.  Sometimes they think they are being double-billed.

Medicare Advantage or Part C:  This is a completely alternative way to receive your Medicare services.  Everything is administered by one private managed care plan.  There are both HMO and PPO options.  These plans are required to cover everything that is offered in basic Medicare, but they may charge lower co-pays and/or offer additional benefits.  Some of the companies that offer these plans are Kaiser Permanente and Scan. The government also has a website to help you learn more about Advantage plans. The plan you buy may also include Part D drug coverage, or the company could offer you a choice of drug plans at a separate price.  Often they offer extra benefits such as dental, vision and hearing care.  In some cases, there are NO premiums, other than what you would pay for basic Medicare.  With other plans, you may have an additional premium.  They may restrict your choice of doctors to only ones who are in their network, or they may charge a higher copay if you go out of network.  Only one company is billed, the Medicare Advantage company, which is less confusing for some people, since they only receive one set of statements and bills for each procedure.

The Medicare Advantage choice is often the least expensive, since there is frequently no premium or only a small premium above the cost of basic Medicare.  However, it is always beneficial to shop around to make sure that you are getting the most for your money, from a reputable insurance company.  Make sure you are aware of all the major choices available in your state.

Summing Up Medicare

To bring it all together, it is important that everyone contact their local Social Security office as soon as possible when they get close to age 65.  In addition, most people will want to attend informational meetings and get more details about the insurance options for both Medicare Supplemental Plans and Medicare Advantage Plans in their state.  Don't make a decision until you have met with two or three different companies and learned about all your choices.

If you start with a company and realize that you wish you had chosen a different company or type of plan, you are not stuck with your first choice.  There is an open enrollment period every year between October 15 and December 7.  During that time, you are free to move to a different plan.

You May Also Want to Find Out About Common Medicare Mistakes

In addition to knowing the various parts of Medicare, you may also want to read the blog post linked below.  It explains the most common Medicare mistakes made by people approaching retirement:

COMMON MEDICARE MISTAKES  

Looking for more information about Medicare, retirement planning, where to retire, common health problems as we age or more?  Use the tabs or pull down menu at the top of the page to find links to hundreds of additional articles.

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Healthcare Advocates for the Seriously Ill

Life can get complicated at times and illnesses late in life can be especially difficult to handle.  Sometimes, a healthcare advocate can help patients get things sorted out and improve the quality of their lives.

An elderly couple we know have suddenly and unexpectedly gone through dual health problems at nearly the same time.  The wife injured her arm, making it difficult for her to lift or carry things.  Her husband developed multiple myeloma, causing cancerous tumors along his spine.  He cannot walk without a cane or other assistance.  She cannot help him.  They both are in physical therapy.  His chemotherapy includes numerous pills a day.  Their children do not live close enough to help with all the details of life ... handling doctor's visits, insurance forms, bills, etc.  Overwhelmed, their children hired a healthcare advocate to make certain the parents are getting the help they need.

The healthcare advocate will not carry the laundry for the wife; nor will the advocate help the man walk.  Her job is to help them hire a caregiver, go to doctor's appointments with them, get answers to their questions about treatment, make sure they are getting the attention and care they need and, at the same time, help them with insurance forms and other paperwork.

What Does a Healthcare Advocate Do?

Below is a list of the duties of a healthcare advocate. Most people will not need all of these services. However, it can be beneficial to have someone capable of handling these issues for you when you or a close family member is seriously ill:

•  Are you confused about choosing a new doctor or specialist? The healthcare advocate can provide you with a physician referral service.
•  Frustrated with your insurance company?  They will handle insurance disputes for you (fight for your payment, and handle insurance appeals & grievances).
•  Are your doctor and hospital bills too complicated to understand?  They will perform medical bill audits and dispute any questionable fees.
•  Are you paying a reasonable fee for your procedures?  Many of them will have a cost navigator that is designed to help you find lower cost procedures, when appropriate.
•  Are you getting the best deal for your prescriptions?  They will help you compare prices.
•  Are there alternative treatments or drug trials that may help you?  A healthcare advocate will assist you in finding treatments that could benefit you.
•  Do you have the best health insurance plan for your medical issues?  Your healthcare advocate will review your current insurance plan and help you decide if you would be better off with a different one.  Then, they will assist you in making the change, during the appropriate enrollment period.
•  Are you using the best prescription, dental and vision plans?  They will help you compare your choices and pick the appropriate one.
•  What if you need to go into a nursing home or assisted living facility, either for a short time while being treated, or permanently?  They will help you find one that will meet your needs both medically and financially.  They can help you apply for programs such as long-term care using Medicaid or VA benefits, if you qualify.
•  What if you are able to live at home during your treatment and recuperation, but only with the services of a home care aide?  Your healthcare advocate can help you hire one.  They can also coordinate visits with physical therapists, occupational therapists and other healthcare providers who may come to your home.
•  Do you feel as if you have a million forms to complete, and you feel too ill to deal with them?  The healthcare advocate can consolidate some of them and complete many parts of them for you ... especially the parts that are repetitive.
•  What if your physician tells you there is nothing more they can do to help you?  In this sad situation, you will be grateful for the assistance of the healthcare advocate in connecting you with caring hospice services to help you in your final days.

How Can I Find a Healthcare Advocate?

You can contact the National Association of Healthcare Advocacy Consultants
They have a member directory at:
http://nahac.memberlodge.com/

You can also learn more about the services provided by healthcare advocates at:


http://www.healthcareadvocates.com/services.html
(215) 735-7711
info @ healthcareadvocates.com 


What are the Advantages of Hiring a Healthcare Advocate?

Dealing with a serious illness can be overwhelming ... whether you are the one who is ill or it is your spouse, parents or another family member.  Whenever you are under stress or don't feel well, it can seem almost impossible to deal with insurance, hospital bills, medical specialists and all the other problems.

In addition, it can be extremely difficult to search for a skilled nursing facility or to hire a home care aid for yourself, should they be needed.

Using a healthcare advocate can be expensive, but they sometimes pay for themselves by saving you money in other ways.  They can also lower your stress ... important to help you heal both mentally and physically.

Interested in learning more about retirement planning, common medical problems, Medicare, where to retire, family relationships and more?  Use the tabs or pull down menu at the top of the page to find links to hundreds of additional articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  morguefile.com

Common Medicare Mistakes

Many people assume that when they sign up for Social Security they will sign up for Medicare at the same time.  They also expect the procedure to be fairly simple and uncomplicated.  While sometimes this is true, it isn't always.  Decisions about when to sign up for Medicare, which parts you should enroll in, and what supplemental policies to purchase can be very complex.

Many people make mistakes when they initially sign up for Medicare.  When they do, it can make a significant difference in what they will pay in premiums for the rest of their lives.  Below are the most common mistakes retirees make.  It is important to educate yourself BEFORE you sign up.  While you can make some changes later, for example in which supplement you want to use, other mistakes are irrevocable.

Common Medicare Mistakes

*  Do not assume that you do not qualify for Medicare if you have not worked long enough to qualify for Social Security (a total of about 10 years).  If you are age 65 or older, you qualify for Medicare Parts B and D as long as you are a U.S. citizen or a legal resident who has lived in the U.S. at least five years.  You might not qualify for Part A if you have not worked long enough, but you could qualify on a spouse's work record or you can pay premiums for Part A.  Go to your local Social Security office during the three months before you turn 65, or before another 3 months have passed afterwards, so you know your options ... even if you do not plan to start collecting your Social Security benefits for a few more years!

*  Do not postpone signing up for Medicare Part B, unless you have health coverage beyond age 65 through an employer or spouse's employer, and the employer has 20 or more employees.  Other than that exception, the seven month window for signing up is the month you turn 65, three months before and three months after.  If you fail to sign up on time, you will pay a penalty, in the form of a surcharge, for the remainder of your life.

*  Retirees covered by a COBRA or a retiree plan from an employer often still need Medicare Part B.  Many of these plans are set up to be a supplement to Medicare Part B.  If you fail to sign up on time, you'll have no coverage for doctors' services, outpatient care and medical equipment until you enroll.  You need to sign up either during your regular seven month window, or no later than eight months after you stop working (if you work past the age of 65).

*  Do NOT wait until your "full retirement age" or until you collect Social Security before you sign up for Medicare.  As mentioned above, the window for signing up for Medicare is NOT the same as your full retirement age.  They are not linked.  If your full retirement age is 66 or 67, you still need to sign up for Medicare around your 65th birthday, with the few exceptions mentioned above.

*  Do NOT postpone signing up for Part D drug coverage, just because you currently do not take any drugs.  You will end up paying extra penalties and have a delay in coverage when you need it.  One way to save money is to sign up for the Medicare approved Part D plan in your area with the lowest premiums. If you do use prescription drugs, you can research which plan is best for you by using the plan finder program on Medicare.gov or by calling Medicare at (800) 633-4227.

*  Do not get confused about the meaning of open enrollment.  The widely advertised open enrollment period of Oct. 15 to Dec. 7 each year only applies to people who are already on Medicare and wish to change their coverage.  If you are new to Medicare, you can sign up for a supplement or Medicare Advantage plan any time of year.

*  Do NOT wait too long to choose a Medicare Supplement or Medicare Advantage plan.  Since basic Medicare only covers about 80 percent of most medical bills, the majority of people will want to use either a Medicare Supplement or a Medicare Advantage plan.  You need to enroll in one within six months of enrolling in Part B.  If you do that, you cannot be denied coverage or charged higher premiums because of a preexisting medical condition ... no matter how sick you are.  This is a one-time opportunity.  If you are not happy with the plan you initially selected, in most cases you can change it each year during the open enrollment period. (Your choices may be limited if you have end-stage renal failure). If you sign up for Part B when you turn 65, but you do not get a supplemental policy within six months because you are still working and have employer provided insurance, you lose the federal protection against being charged higher premiums because of a preexisting medical condition.

*  Make sure you understand the difference between a Medicare Supplement and a Medicare Advantage Plan.  Both are available across the United States.  A Medicare Supplement is a policy you buy in addition to paying for your Medicare benefits.  You normally have a wider choice of doctors and hospitals; however, they are typically more expensive than a Medicare Advantage Plan and you are basically paying for and dealing with two insurance companies ... the basic government Medicare agency and the insurance carrier handling your Medicare Supplement.  A Medicare Advantage Plan limits you to their group of doctors and hospitals.  However, they are typically less expensive and sometimes cost no more than basic Medicare, yet offer better coverage.  In addition, you only need to file claims and deal with the Medicare Advantage insurance company.  They handle government claims for you.

*  Do not ignore the Annual Notice of Change.  It will be mailed to you every September if you are enrolled in a Medicare Advantage plan (either HMO or PPO) or a Part D prescription plan.  It will explain what changes in coverage and premiums will be made for the coming year.  After reading it, you can decide if you want to select a different plan during the fall open enrollment period.  This could help you avoid a nasty shock from rising premium prices or changes in coverage.

*  Do not forget that many retirees qualify for financial assistance.  This is not charity.  You are entitled to this assistance and extra benefits.  If money is tight, find out if you qualify for these programs:

Medicare Savings Program - Your state will pay the Part B premiums and possibly other expenses.

Federal Extra Help - You could qualify for low-cost Part D prescription drug coverage.

To find out if you qualify, contact your State Health Insurance Assistance Program (SHIP).  You can find the toll-free number at:   shiptacenter.org

Want to find more information about Medicare, Social Security, common health issues, financial planning or the best places to retire?  Use the tabs or pull down menu at the top of the page to find links to hundreds of additional articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  morguefile.com